Taulia: Half Of Businesses Are Paid Late

Half (50%) of businesses surveyed are being paid late by their customers, according to a supplier sentiment survey conducted by Taulia, a leading provider of working capital management solutions. This is the highest percentage since the annual survey began, and a sharp rise from 36% receiving payments late from the prior year. Taulia’s global Supplier Sentiment Survey, which has been conducted since 2014 and this year collected the views and insights of over 9,600 respondents across the world, found that only four in ten (41%) are paid on time by their customers. Adding to business' financial pressures, the survey found that more than two-fifths (42%) of respondents expect an increase in borrowing costs over the next 12 months. Of which, nearly a tenth (7%) predict their costs to increase by over 10%. To protect their working capital needs, bridge cash flow gaps, and help support business growth, three-fifths (59%) of respondents expressed interest in taking early payment for a discount at least some of the time. The main reasons for taking early payments include:

• Cash flow gap (48%)
• Working capital need (26%)
• Collections/payment predictability (24%)
• Ease of use (12%)
• Reduce Days Sales Outstanding (9%)

Cedric Bru, CEO of Taulia, commented: “Amidst high inflation and market turbulence, businesses across the globe are facing financial strain. A marked rise in late payments this year is the latest in a longer trend of behavior, suggesting that businesses are navigating through a tough financial period.” “In times like these, working capital solutions are more important than ever for businesses looking to financially future-proof themselves. Not only do these solutions allow them to access extra liquidity to optimize their cash flow, but they also keep their businesses running smoothly. At a macro level, working capital solutions also increase global supply chain resiliency and stability.”